UVM, tech-hub partners ask committee for $1 million to subsidize prototyping costs for Vermont semiconductor startups

University of Vermont officials and regional tech-hub partners told the Commerce & Economic Development Committee that a federal Economic Development Administration award of $23.5 million fell short of the hub’s full $37 million request and did not fund the prototyping component hosted at GlobalFoundries. The university asked the committee to consider $1 million in state funds, spread over two years, to subsidize prototyping costs for Vermont-based companies.

Why it matters: hub leaders said the tech hub blends workforce development, high-performance computing and prototype fabrication to help small companies design, build and test advanced semiconductor and power-electronics devices. Officials said the federal award covered workforce and computing elements but the GlobalFoundries prototyping work remains underfunded; state funds would lower the extreme per-project cost of running a prototype so more Vermont companies could participate.

Wendy Koenig, executive director of government relations at the University of Vermont, said the governor’s budget did not include the $1 million one-time tech-hub ask but that UVM remains hopeful the committee will support the request. Doug Merrill, regional innovation officer for the tech hub, said the EDA award covered workforce development and the Vermont Advanced Computing Center work but not the prototyping activity. Kurt Dobrowski, UVM vice president for research and economic development, said the university is contributing its own resources and that partners such as the Northeast Microelectronics Coalition (NEMC) and GlobalFoundries have committed funds for the testing and prototyping pieces, but that the prototyping step remains a barrier for early-stage Vermont companies.

Hub leaders described prototyping as a costly but necessary step: converting a chip design into a physical prototype that can be tested often runs into five-figure or six-figure costs. The requested $1 million would be used to lower the cost-per-prototype to a level that would allow Vermont companies to participate — the presenters said the program goal is to reduce a $100,000 prototyping outlay down toward the $10,000 range for qualifying Vermont companies, with eligibility conditioned on being Vermont-based and doing the work in-state.

Officials named local companies that could benefit — including ResNetLink, Chroma Technologies, Rugged Micro Power and others — and said the work would be performed by Vermont employees and local partners. The hub also expects preferential treatment in pricing for Vermont companies while offering access to partners elsewhere in New England, the presenters said. Koenig added that showing state investment alongside the federal award strengthens future federal grant competitiveness.

Committee members asked whether the federal award decision reflected concerns about cross-border beneficiaries; presenters said the EDA program is focused on rural and underserved regions and that the hub intentionally excluded major metropolitan areas from its proposal. Members also confirmed the $1 million ask would cover two years of prototyping subsidies and that the funds requested are intended exclusively for Vermont companies or Vermont-based company offices.

There was no committee vote during the presentation; staff said appropriations staff and committee leadership were aware and that the committee would follow up as it prepares a letter or formal response to the governor’s budget.

Sources and quoted speakers are identified below.